Lower offer price for the limited partnership units dramatically cuts the proceeds of the offering.
Northern Tier Energy, the new owner of the St. Paul Park oil refinery and SuperAmerica stores in Minnesota and Wisconsin, fetched just $14 per unit in its IPO late Wednesday, far short of expectations.
The offer price, reported by Bloomberg and Renaissance Capital, brings in $227 million -- or nearly $100 million less than the company had hoped to raise in the offering.
Units in the master limited partnership, with the ticker symbol NTI, are expected to begin trading Thursday on the New York Stock Exchange,
The 16.25 million units offered by the Ridgefield, Conn.-based company, had expected to price at $19 to $21 per unit, and raise $325 million at the midprice.
The company had said it intended to use the proceeds to reduce debt, cover recent losses, make payments related to its 2010 acquisition and reward investment firms behind the deal.
The partnership controlled by ACON Refining Partners and TPG Refining acquired the refinery, SuperAmerica convenience stores and a stake in an oil pipeline from Marathon Oil Corp. in December 2010.
Northern Tier has said it plans to invest in the refining and other operations, and to make acquisitions.
Northern Tier has 166 company-operated and 67 franchised SuperAmerica stores and a 17 percent stake in a 300-mile pipeline that carries crude oil from a hub at Clearbrook, Minn., to its refinery.